With the controversy surrounding the Panama Papers the issue of tax havens is back on everyone’s mind. This column discusses some of the common misconceptions that people have about tax havens. It tries to refute some of the ideas about tax havens being good for protecting vulnerable people from certain forms of despotism and being good for high-tax nations. The stereotypical image of tax havens all being small tropical islands is also not accurate. Countries that act as tax havens are not always going to be rich. This article also argues that cutting corporate taxes will not help nations compete with tax havens. Tax havens have become a major global issue because of the Panama Papers and policy makers around the world are facing increasing pressure to act.
See Nicholas Shaxson, Five myths about tax havens, The Washington Post, April 15, 2016.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
